Fiduciary Liability Insurance
Fiduciary liability insurance covers a business and the individuals who manage its employee benefit plans, like a 401(k) or health plan, against claims that they breached their duty to act solely in plan participants' best interest. It responds to allegations like poor investment fund selection, excessive plan fees, or mismanagement of plan assets, claims that general liability and even D&O policies typically don't pick up. The Allen Thomas Group makes sure any business sponsoring an employee benefit plan understands this exposure exists even when no one did anything obviously wrong.
Who Is a Fiduciary Under This Coverage
- Business owners who sponsor a benefit plan
- HR staff or benefits administrators who manage enrollment and plan operations
- Plan trustees or committee members with discretionary authority
- Anyone with control over plan assets, investment menus, or administration decisions
What Kinds of Claims It Covers
Common allegations include excessive fees charged within a 401(k) plan, imprudent selection or monitoring of investment options, failure to follow the plan's own governing documents, delayed enrollment or distribution errors, and improper amendments to plan terms. These claims can come from current or former employees, plan participants, or in some cases regulators.
Why This Is Different From D&O or EPLI
| Coverage | What It Responds To |
|---|---|
| Fiduciary Liability | Mismanagement of employee benefit plans |
| D&O | Claims against directors and officers for decisions affecting the company or its shareholders |
| EPLI | Employment-related claims like discrimination, harassment, or wrongful termination |
How The Allen Thomas Group Can Help You
We'll help you understand exactly how fiduciary liability insurance affects your coverage and cost, then shop your policy across 15+ A-rated carriers to find the right fit.
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